The military-political conflict between Nagorno Karabakh
and Azerbaijan, which dates back to 1918, resumed in 1988 and gradually
escalated into an armed confrontation. This happened during the collapse
of the Soviet Union, when new independent states emerged in the South
Caucasus. Besides regional powers, such as Russia and Iran, the Conference
for Security and Cooperation in Europe (CSCE) assumed the role of the
mediator in the settlement of the Nagorno Karabakh conflict.

In September 1991, President of Russia Boris Yeltsin
and President of Kazakhstan Nursultan Nazarbayev volunteered to mediate
the conflict. After their trip to Stepanakert, negotiation took place
among the representatives of Nagorno Karabakh, Azerbaijan and Armenia
in the town of Zheleznovodsk (Russian Federation) on September 23, 1991.
A communique was signed on the results of the meeting.

In the period of February-May 1992 an Iranian mediating team was present
in the region. In the framework of that mediating effort, the Iranian
Foreign Minister A. Velaeti and Deputy Foreign Minister M. Vaezi visited
the region. On May 8, 1992 on the level of the highest leadership of
Armenia and Azerbaijan and representatives of Iran and Russia a joint
communiqué was signed in Tehran. However, the escalation of military
actions in the region and absence of Nagorno Karabakh representatives
in Tehran did not allow the implementation of the terms of the agreement.

CSCE made its first contacts with conflict sides in March of 1992. The
First Supplementary Meeting of the CSCE Council (Helsinki, March 24,
1992) decided to convene a conference on Nagorno Karabakh under the
auspices of the CSCE in Minsk (Belorussia), which would "provide
a permanently active forum for negotiations to achieve peaceful settlement
to the crises". Besides Armenia, Azerbaijan, Czech and Slovak Federative
Republic, France, Germany, Italy, Russia, Turkey and the United States,
the Council decided to invite the elected representatives, i.e. the
legitimate Nagorno Karabakh authorities to the Conference as an interested
party. It is important to note that the decision to invite Nagorno Karabakh
representatives was taking place during the time when the NKR was under
siege with its population on the brink of a humanitarian catastrophe.
The first Chairman of the Minsk Conference Mario Rafaelli (Italy) revealed
that the subject of negotiations itself was under the threat of annihilation.
(mentioned in a letter of Rafaelli to the Acting Chairman of the CSCE
dated September 23, 1992).

The absence of a defined negotiating status of Nagorno
Karabakh allowed dual interpretation of the rights and responsibilities
of the Nagorno Karabakh side. Even today, this aspect hinders the effectiveness
of the peace effort.

This position of the CSCE Council was distorting the
essence of the problem while Nagorno Karabakh authorities demanded explicitness.
Due to this, the NKR delegation was not present during the first sessions
of the Minsk Group (MG), which were dedicated to the organization of
the Minsk Conference. NKR representatives participated in the third
session in Rome, having only one item on their agenda - the status of
their participation. Subsequently, the Minsk Group worked regularly,
until its "Renewed Schedule of Measures" of September 28,
1993 was supported by the sides to the conflict.

After the decision was made to create the Minsk Group
on March 26, 1992, the UN Security Council decided not to participate
in any peace effort on Nagorno Karabakh, voicing support for the CSCE.

During the course of mediations, the UN Security Council
(SC) passed several resolutions in support of the CSCE, namely:

UN resolutions qualify the forces that took control of some Azerbaijani
regions as "local Armenian forces", thus refuting official
Baku's statements about the involvement of the armed forces of the Republic
of Armenia in those operations. Besides, the mentioned above UN SC documents
call for comprehensive measures and simultaneous solution of the existing
problems (withdrawal of armed forces, restoration of economic relations,
energy cooperation and transport routes in the region, return of displaced
persons, negotiations in the framework of the OSCE Minsk Group and direct
contacts between the sides with a purposes of reaching the final solution
to the problem).

During March-December 1994, the peace process was mediated by Russia
on the level of consultations of experts from Azerbaijan, Nagorno Karabakh
and Armenia. This strained Russia's relations with the OSCE. An understanding
was reached during the CSCE Budapest summit (December 1994), where a
decision was made to consolidate Russia's and CSCE's mediating efforts.

The participants of the summit decided to create the
Co-Chairmanship of the Minsk Conference and the Minsk Group, where Russia
would have a status of a permanent Co-Chairman. In 1995 along with Russia
the Minsk process was co-chaired by Sweden and in 1996 by Finland. In
the beginning of 1997 a tripartite co-chairmanship was introduced involving
Russia, the United States and France.

Minsk group mediated consultations resumed in January of 1995 and were
practically sabotaged by the OSCE (Organization of Security and Cooperation
in Europe) Acting Chairman's statement about principles of settlement.
The statement was made under Azerbaijani delegation blackmail, which
threatened to veto the entire final document of the OSCE Lisbon Summit
in December of 1996.

Only once after the Lisbon summit the sides assembled for consultations
- in April 1997. From May 1997, the peace process was sustained only
by the OSCE Minsk Group Co-Chairmen's shuttle diplomacy between the
capitals of Baku, Stepanakert and Yerevan, which had a purpose to coordinate
basis for the resumption of negotiations.

Main stages of the
peace process

Moscow, Setpember 1993 The CSCE Minsk Group proposes
the "Schedule of urgent measures to implement UN Security Council
Resolution No. 822" to the sides, in which Nagorno Karabakh appears
as a side to the conflict for the first time. The UN Security Council
Resolution No. 874 of October 14 1993 recommended OSCE Minsk Group's
"Schedule of urgent measures" to the sides, and thus, reaffirming
recognition of Nagorno Karabakh as a side to the conflict.

Bishkek meeting, May 1994 During the Bishkek meeting
(May 4-5 1994) of parliament speakers of Armenia, Azerbaijan and Nagorno
Karabakh, the sides sign the Bishkek Protocol, which laid ground for
the subsequent cease-fire agreement. The Cease-fire Agreement entered
force on May 12, 1994. The identical texts of the agreement were signed
by the Defense Minister of Armenia, Defense Minister of Azerbaijan and
the Commander of the NKR Defense Army.

Budapest summit of CSCE, December 1994  According to the
decision of the summit, the mediating efforts of Russia and CSCE were
unified at the summit and the Co-Chairmanship of the Minsk Conference
and the Minsk Group was introduced. The participating states welcomed
the affirmation of the cease-fire agreement reached on May 12 1994 by
the sides to the conflict (Azerbaijan, Nagorno Karabakh and Armenia)
and announced their readiness to introduce multinational CSCE peacekeeping
forces after the agreement on termination of the conflict is reached
by the sides. (An agreement was reached about the creation of the High
Level Planning Group of the OSCE.)

During the OSCE Lisbon summit in December 1996, the Acting Chairman
made a statement about the principles of Nagorno Karabakh conflict settlement,
which, if adopted, would have practically predetermined the results
of the negotiations. The statement of the OSCE Acting Chairman sabotaged
the negotiating process among the parties to the conflict. The consultations
on the basis for negotiations between the Co-Chairmen of the OSCE Minsk
Group and the governments of Azerbaijan, Nagorno Karabakh and Armenia
continued.

May 1997  The OSCE Minsk Conference Co-Chairmanship proposed
a new basis for resumption of negotiations. The plan was accepted by
Armenia and Azerbaijan, but rejected by Nagorno Karabakh.

September 1997  The OSCE Minsk Group Co-Chairmen proposed
a stage-by-stage plan for conflict settlement. The plan was accepted
by Azerbaijan and Armenia but was rejected by Nagorno Karabakh. The
NKR authorities were insisting on the package plan of conflict settlement.
The acceptance of the stage-by-stage plan as a basis for settlement
lead to an internal political crisis in Armenia. As a result of which
President of Armenia Levon Ter-Petrosian resigned in the beginning of
1998 and the Prime Minister of Armenia Robert Kocharian won the extraordinary
elections.

November 1988  The OSCE Minsk Group Co-Chairmen proposed
a new basis for negotiations, which envisaged a comprehensive settlement
of the problem by unconditional resumption of negotiations. Nagorno
Karabakh and Armenia accepted this proposal, while Azerbaijan rejected
it.

NKR-Azerbaijan bilateral
negotiations

September 15 1992  Contacts between the representatives
of Azerbaijan and Nagorno Karabakh in Moscow.

July 28 1993  Martakert region Contact Line. Meeting of
government delegations of NKR and Azerbaijan, headed by the Chairman
of the NKR Self-Defense Committee S.Sargsian and Azerbaijani Republic
State Minister I.Aliyev. Apart from the military persons, representatives
of Ministries of Foreign and Internal Affairs were also in the delegation.

September 12-13 1993  Moscow. Negotiations between the
Deputy Chairman of the Supreme Council (parliament) of Azerbaijani Republic
A. Jalilov and NKR Foreign Affairs Minister A. Ghoukasian. A joint communique
was adopted.

September 25 1993  Moscow. Meeting of top leaders of Azerbaijan
and NKR.

Summer-Fall 1993  Regular telephone communication between
Baku and Stepanakert on the level of military and political leadership
of the sides.

* It should be noted that the Azerbaijani authorities were always
the initiators of the bilateral contacts. However, in December 1993,
the Azerbaijani side severed all relations with the leadership of NKR
and launched a massive offensive against Karabakh along the entire Line
of Contact.